GROWTH IN COCHRANE
Housing starts on rise
While there’s been a pullback in new housing construction across the Calgary area this year, in a town 35 kilometres west of city limits, starts are on the rise.
From Jan. 1 through the end of August, there were 693 housing starts of all kinds in Cochrane, says Canada Mortgage and Housing Corp. This marks a 15 per cent rise from the 604 that broke ground during the same months in 2014.
Meanwhile, across the Calgary census metropolitan area, which includes activity in Cochrane, Airdrie and Chestermere, housing starts of all kinds dipped 30 per cent to 8,532 from 12,275 a year ago.
“Cochrane is still very affordable,” says La Vita Land development manager Laura Hladyshevsky. “Lots of choice (and) product available that is running out in northwest Calgary.”
La Vita is the developer behind Cochrane communities The Willows of River Heights and Fireside. The Willows was named new community of the year at the Canadian Home Builders’ Association-Calgary Region SAM (Sales and Marketing) Awards in the spring.
“The town is at a size where it’s becoming one of the best places to live in the Calgary area,” adds Hladyshevsky. “Excellent amenities and future amenities planned and a good investment for people now and going forward.”
Cochrane has also seen more homes finish construction this year than the same time a year ago. There were 589 completions on homes of all kinds between Jan. 1 and the end of August compared to 503 during the same days in 2014.
Cochrane’s housing growth has been fuelled by the multi-family market this year as single-family starts in the town declined, says Richard Cho, CMHC’s principal of market analysis. Shovels turned for 107 condo-style apartments between Jan. 1 and the end of August after 32 broke ground a year earlier. Townhome activity also picked up, with 256 starts from 154.
Single-family homes, however, eased to 208 starts from 318.
“It’s no surprise that singles are down in Cochrane. I think we’re seeing that right across the board,” says Cho. “I think in a place like Co- chrane where we don’t typically see a lot of (multi-family units) being started, it wouldn’t take much to surpass the previous year’s number. There’s going to be a bit more volatility in some of the smaller centres.”
With that said, attainable prices are likely a factor in the continued demand in Cochrane, he adds.
“People are certainly attracted to some of the lower prices that are offered outside the city of Calgary in areas such as Cochrane,” says Cho.
The average price on single-family homes and duplexes absorbed in Cochrane over the second quarter of 2015, which is the most recent data, was $587,295, says CMHC. This figure refers to the value of the home at the time of possession.
In comparison, Calgary’s average absorbed price was $786,161, and Airdrie’s was $663,169. Chestermere also saw higher prices with an average absorption of $739,856.
The resale market also shows lower prices in Cochrane compared to Calgary and Chestermere this year. However, Airdrie was the least expensive of the four. The benchmark price on single-family homes sold in Cochrane between Jan. 1 and the end of August was $446,713, says the Calgary Real Estate Board. A benchmark price is that of a typical home based on a formula that uses various factors to ensure accurate comparisons.
In Calgary, the single-family benchmark price was $514,775, and it was $503,013 in Chestermere. Airdrie’s was $397,250.